Feature
PRACTICE
Spotlight on assurance The coronavirus has exposed cracks in some corporate governance structures. A new code of practice for internal auditors aims to boost the role of independent assurance in corporate Britain BY GAVIN HAYES
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n an increasingly uncertain world, and with businesses exposed to a level of adverse risk not seen since the 2008 financial crisis, boards should be turning to strong, effective and well-resourced internal audit functions to get independent assurance that their risks are being managed and mitigated effectively. The Chartered Institute of Internal Auditors’ new Internal Audit Code of Practice provides the framework and practical guidance to underpin this critical work. The advent of the coronavirus crisis means that the need for effective internal audit has never been greater. The current global pandemic has exacerbated a plethora of adverse risks to business. Examples include cashflow and liquidity problems, an increase in cyberattacks and fraud, serious health and safety threats, as well as putting immense pressure on supply chains caused by demands from consumers for perceived essential products such as hand sanitiser. This means that now more than ever, businesses must make sure they have robust and effective governance, risk management and internal control processes in place. Yet even before this crisis emerged, there had for some time been a far greater focus on the need for businesses to manage and mitigate their risks more effectively. There has been a greater demand for independent assurance and calls for stronger corporate governance. The catalyst has of course been a myriad of corporate
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The advent of the coronavirus crisis means that the need for effective internal audit has never been greater
Internal Audit Code of Practice: Guidance on effective internal audit in the private and third sectors
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Internal Audit Code of Practice Guidance on effective internal audit in the private and third sectors
January 2020
Enterprise Risk
